Cement and Consumer Goods Manufacturers Anticipate Customs Duty Reduction on Petrochemical Products to Provide Relief

Government Announces Customs Duty Exemption on Petrochemical Products Amid West Asia Crisis

The Indian government has exempted the import of critical petrochemical products from customs duty to ensure supply stability and provide relief to consumers of final products amid the crisis in West Asia. The duty exemption, which is valid till June 30, 2026, will benefit sectors dependent on petrochemical feedstock and intermediates such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments.

The exemption will provide much-needed relief to manufacturers and downstream sectors, including consumer goods companies, retail, and cement, which are facing challenges from rising production and packaging costs. Petrochemicals are critical raw materials for plastics, and a lower cost could translate into cheaper packaging materials for sectors such as FMCG and consumer goods companies.

JK Lakshmi Cement President & Director Arun Shukla said the government's move comes as a relief for the industry. "At a time when global prices and supply chains remain unpredictable, this step should improve stability in input costs," he said. For the cement sector, while these materials are not part of the core manufacturing process, polymers such as polypropylene and polyethylene are used in packaging and certain value-added applications.

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The goods on which the customs duty has been exempted include:

The exemption is expected to benefit sectors such as plastics, packaging, textiles, pharmaceuticals, chemicals, automotive components, and other manufacturing segments. Parle Products Vice President Mayank Shah said the industry is still waiting for the impact of the exemption of import of petrochemical products from customs duty. "If input prices decline as expected, it will provide significant relief to companies, allowing them to maintain current price levels without resorting to hikes," he said.